One of the first major bills passed by this legislative session is now on Gov. Thompson`s desk, and how wonderful it sounds. State utility taxes would no longer be a flat 5 percent of gas and electric bills, but would be based on the amount of energy used. This is supposed to save a family of four about $60 next year.
Add up all the savings throughout the state, and it comes to $50 million or more. Add up all the savings over the next four years–all the taxes not paid even though energy rates rise–and the total climbs to $225 million.
No wonder the bill had legions of supporters in both the Senate and House.
There`s just one little problem. There usually is when politicians leap on board a tax-cut bandwagon without completing the arithmetic. A $225 million saving over four years means $225 million the state will not have for schools, health services, child-abuse programs and all the other services that taxpayers demand.
The cost of those services and often the expectations of taxpayers increase annually. When a tax is capped, where is that extra money supposed to come from?
Legislators are crowing about this tax cut at the same time they are preparing to increase state financial obligations with Build Illinois, a billion-dollar public works program. No doubt other programs that are more ambitious than their funding also will emerge before adjournment.
The legislature did not do its homework, so that job falls to Gov. Thompson. Without a replacement tax or a corresponding service cut, he`ll have to veto this bill.
